1. Assume that the initial investment for a covered call is 250. The strike price for the call you sold is 270. The current stock price is 265. The max loss from this strategy is:

270

10

5

250

265

2. Assume that the initial investment for a covered call is 250 (net of buying stock and selling a call with a strike of 270). The strike price for the call you sold is 270. The current stock price is 265. The max gain from this strategy is:

15

270

20

5

250

3. Assume that the initial investment for a covered call is 250 (net of buying stock and selling a call with a strike of 270). The strike price for the call you sold is 270. The current stock price is 265. The % move to max gain price from the price today is:

8.00%

-7.41%

-5.66%

1.89%

6.00%